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3.
Big data and business models: crucialissues● Go beyond hypes and fads● Which opportunities for SMEs and large enterprises?● Are open data economically exploitable?● In many industries, business models around big data arenot clear yet.– What services and what compelling value proposition?– For what market segments? A FOCUS ON THE INFOMOBILITY SERVICEINDUSTRY

4.
Four reasons for a focus on theInfomobility industry1. Mature industry (e.g. maps) before the discontinuity produced byInternet and mobile business– New entrants (e.g. Google, Nokia, and many startups)– Mergers and acquisitions (e.g. Nokia and Navtech, TomTom andAtlas,– Convergence with other industries● directories/advertising (Google and the attempt to acquire Groupon)● Car manufacturing (e.g. GM and OnStar)2. In location-based services big data, customer co-creation, andcrowdsourcing are a reality more than in any other industry.3. Cities are a generator of big data. Can they become “dataretailers” or wholesalers?

5.
Four reasons for a focus on theInfomobility market● 4. the number of broadband mobiledevices is increasing  Just at thebeginning of the S-curve

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Infomobility services. Segmenting themarketCompelling value proposition? For Whom?● Motorists? …Are they really interested when they do everyday the same route to go to work (and they barely havetwo alternative ways)?● Commuters? …Are they really interested in a couponwhen they have to rush to work or to catch a train?● A market segment: tourists/travellers, in big citiesespecially  large cities are “always on the move” andthey offer more scalable markets●  NOT A MASS MARKET. BUT ONLY CERTAINMARKET SEGMENTS

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Location-based Servicescomplementary to infomobility● Collaborative consumption (e.g. ride sharing servicessuch as Zimride, Blablacar, Carpooling.com)● Location-based social networks (e.g. Foursquare,Nextdoor to strenght local physical communities)● “Quantified-self” tracking services for sports (e.g.Runtastic), places you have been, etc.● …● Still Opportunities for small businesses? Probably,yes. But competition is time-based and a large scale ofinvestments is needed…

14.
Big data markets – Some predictions● Source of differentiation lies in customer interface and data– Source of differentiation will eventually shift from the algorithmsfor data fusion and cleaning to the data themselves– Economic value will lie in the complementarities of data fromdifferent sources● Winner-takes-it all markets  Only few players will remain!● Re-intermediation of merchants and many other localbusinesses (e.g. travel agencies are slowly disappearing, theyellow page industry is reconfiguring)  Big Infomediariessqueeze big profits!

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Consequences of the re-intermediation process: thecase of the Italian hospitality industrySource: elaboration on AIDA data Market shares shifting from large to small players, BUT…

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Open data. Light and shade● Better transparency forcustomers● Better analytics forgovernments to reduceinefficiencies (Health publicexpense in the UK)● Precondition for citizens’empowerment.● They may allow the citizen todis-intermediate thegovernment and media.• Open data as a public good. Leave them it and thensomeone will figure out howto use them.• Not yet many cases ofcommercial exploitationfor open data.– Few start-ups born onopen data (e.g. only fourin the UK) and withbusiness models yet tobe constructed!LIGHT SHADE

18.
Open data. Beyond the hype● Data fusion and analytics as the value addedactivities.● From a survey on the Italian www.dati.gov.it– 151 apps providing data that are in large part static– Apps as “a static Window” for municipalities forinforming on events, parking, touristic attractions,etc.– No business models around the majority of theapps (open data as a terrain for hobbyists? )

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Recap and Final considerations● Big data as a disruptive innovation (re-intermediationprocesses, new entrants)● Big investments are needed. Not always a business for smallfirms…● Many examples of small businesses providing services“linked” to the ones of “platform leaders” á la Facebook.● Can open data really be a “key ingredient” for start-ups?Strategic resources are rarely for free, “by definition”! StillSearching for a scalable business model.● Big data management capabilities and Italian companies.They are not only an opportunity…